Key Takeaways
- Nvidia reported revenue of $96.2 billion (around ₱5.96 trillion) for its fiscal second quarter, up 106 percent from a year ago, with $59.7 billion (around ₱3.7 trillion) in net income
- The company guided to $108 billion (around ₱6.7 trillion) in revenue next quarter
- Nvidia has reportedly agreed to buy Hugging Face, the open-source AI hub, for $12.9 billion (around ₱800 billion) — but no signed agreement has been announced
- Hugging Face hosts the models and benchmarks Filipino AI developers actually use, including FilBench, the evaluation suite for Philippine-language AI
Nvidia's latest earnings report landed on August 26 with numbers that would have sounded fictional two years ago. Revenue for the quarter ended July 2026 hit $96.2 billion (around ₱5.96 trillion), up 18 percent from the previous quarter and 106 percent year on year, according to Nvidia's results announcement. Net income reached $59.7 billion (around ₱3.7 trillion), and gross margin held at 75 percent.
A data center business doing 92 percent of the work
The engine is unchanged: data center revenue came in at $89.0 billion (around ₱5.5 trillion), up 117 percent from a year ago and 92.5 percent of the whole company, driven by the Vera Rubin platform rollout and continued Blackwell GPU demand. Nvidia also returned $26.0 billion (around ₱1.6 trillion) to shareholders in the quarter and guided to $108 billion (around ₱6.7 trillion) in revenue for the current quarter.
"AI has reached its inflection point," CEO Jensen Huang said in the release. "It's doing useful work. Its tokens are productive and profitable."
The reported Hugging Face deal — and the caveat
The bigger strategic story broke the same day. Nvidia has agreed to acquire Hugging Face, one of the most widely used platforms for sharing open-source AI models, for $12.9 billion (around ₱800 billion), according to reporting by The Information picked up by TechCrunch. Business Insider put the potential valuation at over $13 billion (around ₱805 billion) but reported the talks had not yet produced a signed agreement and could still fall apart. Neither company has confirmed the deal, so treat it as a report, not a done transaction.
The price is a striking jump for a company valued at $4.5 billion (around ₱280 billion) in its 2023 funding round. Hugging Face reportedly turned down a $500 million (around ₱31 billion) investment from Nvidia in late 2025, and its annual revenue recently reached about $150 million (around ₱9.3 billion), per TechCrunch.
Why would Nvidia pay 86 times revenue? Because a thriving open-model ecosystem protects its hardware business. As major AI labs design their own chips, developers who download open-weight models from Hugging Face still need GPUs to run them — and those are overwhelmingly Nvidia's. The deal would also hand Nvidia a re-entry into cloud services, since Hugging Face already helps developers run models on rented compute.
Why this matters to Filipino AI developers
Hugging Face is where Filipino natural language processing (NLP) work lives. FilBench, the benchmark suite that measures how well AI models handle Tagalog, Filipino, and Cebuano, is hosted and evaluated on the platform, and its findings underline why the Hub matters here: open-weight models offer competitive performance without commercial pricing barriers — the cost-effective route Filipino developers and startups actually take. We have seen the same dynamic with releases like Moonshot's Kimi K3 weights landing free on Hugging Face. If the acquisition closes, the neutral home of open AI becomes the property of the industry's biggest hardware vendor. Hugging Face CEO Clem Delangue has publicly aligned with Nvidia's open-source advocacy, but whether the Hub stays open on the same terms is the question every developer community — the Philippine one included — will be watching.
